Jaypee Infratech: CoC rejects Suraksha's offer, company might face liquidation

The Committee of Creditors (CoC) on Friday rejected the Suraksha Realty's resolution plan in Jaypee Infratech's insolvency proceedings. The 270-day deadline under the Insolvency and Bankruptcy Code (IBC) is set to end on May 6.

The company might face liquidation unless National Company Law Tribunal (NCLT) allows more time under IBC.

Sources said that around 40 per cent of the CoC voted against Suraksha Realty's resolution plan. Only 20-22 per cent of the CoC voted in favour of Suraksha Realty's offer. 

Around 9,000 out of 20,000 home buyers participated in the voting process.

The voting was concluded at 12 pm on Friday. The Interim Resolution Professional (IRP) on Tuesday extended the time for voting on the bid of Suraksha Realty which was the only bidder in the fray to acquire Jaypee Infratech.

Initially, the period for three-day voting was from 9 am on April 30 to 5 pm on May 2.

“Now, it looks like the company might face liquidation. If that happens, things will be become worse and flat buyers will have to wait more to get their homes,” said a buyer. 

The CoC had also rejected the National Building Construction Company's (NBCC) bid citing the reason that it was subject to approval from various government authorities on April 26.

However, on Wednesday, the NBCC received all the required approvals from Department of Investment and Public Asset Management (DIPAM) as well as from the Ministry of Housing and Urban Affairs.

Following which, there was a buzz that NBCC might reconsider their offer. But, as per sources, the IRP did not reconsider the NBCC's resolution plan. 

Now, the flat buyers fear that the company might go for liquidation. Moreover, a group of flat buyers of Jaypee Wishtown in Noida on Thursday questioned the role of appointed IRP alleging him of creating obstruction in the process to get solution.

Jaypee Infratech’s lead lender IDBI Bank had on Monday approached the Allahabad bench of  NCLT for seeking extension of insolvency proceedings beyond the May 6 deadline.